Target Market

Chapter 3: Market Opportunity Analysis and Consumer Analysis LET’S

start!
Recall: Target Market of a
• What is market segmentation? product/service
• Why it is important? Is defined as its most probable and
• What are the four major variables used in market most logical consumers, and may likewise
segmentation? be its heaviest consumers.
• How can you relate yesterday’s topic to Target
Market?
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How to Create a Target Market Profile and Positioning
Statement?
1. A target market profile identifies the characteristics of the prospects most likely to purchase
from you. Use characteristics such as age, gender, location, income level or education to
build the profile.
2. Profile business customers by a different set of characteristics, including size of business,
industry sector and location.
3. Research the interests and preferences of your target market to find out what they feel is
most important about a product like yours. 
4. Build a more detailed profile of your target audience by capturing information on their
interests and requirements on your website.
5. Identify the product benefits that represent the greatest value for your customers. Compare
the important factors with the performance, features and benefits of your products. 
6. Create a positioning statement for each distinct customer sector. Use a consistent format
such as "for this target audience, our product provides these important benefits that our
competitors cannot match.

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Target Market Analysis Tool
How to identify your target market?

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Metro Manila Philippines 11,278,564
By gender: By marital status: “Males and females residing
Male Single 31.1% in Metro Manila who belong
49.3% Married 46.2%
Female 50.7% Separated/Widow/Widower 22.7% to income classes A, B, and
C, single, are between ages
By income class: By age: of 21 to 30, who are sports-
Class AB 21.2% Below 10
Class C 14.8% minded and are looking for
41.3% 10 – 20 21.4% a sport drink that can
Class D 21 – 30 19.7%
22.4% 31 – 40 17.9% provide relief after
Class E 15.1% 41 – 50
11.7% strenuous physical
51 – 60
Above 6
8.4%
6.1%
activities.”

Example:
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 Elements of an Ideal
Target Market
A company may finalize the selection of its market
upon consideration of its conformity with the following
elements:

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 • Substantial – the selected target market must be large enough in terms
of quantify and /or total consumption capability.

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If the target market is not substantial enough,
here’s what you can do.
A.Expand its target market to include other segment
brackets previously not targeted.
B.Expand its target market by reducing the number of sub-
variables.
C.Combination of two options.
The target market should ideally be :
1. Financially capable
2. Reachable
3. Homogeneous

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Target Market vs. Consuming Market

Target Market Consuming Market

• Individuals to whom the • Includes individuals outside
company decided to focus its the product’s target market
marketing effort. description.

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ThankYou

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